Vanguard's global chief economist Joe Davis recently highlighted an interesting defensive play for portfolios—fixed income positioning could serve as insurance against a potential AI growth plateau. The logic is straightforward: if artificial intelligence development hits a ceiling and fails to deliver the transformative economic gains many have priced in, risk assets could face pressure. This perspective reflects growing discussions in institutional circles about balancing the optimism around AI innovation with realistic scenario planning. Fixed income, traditionally seen as capital preservation, suddenly becomes relevant for those hedging against inflated AI expectations. It's a reminder that not every bull thesis plays out as envisioned—diversification across asset classes remains the cornerstone of prudent wealth management.